Credit Appraisal and Monitoring
Credit appraisal was a highly subjective effort to balance a combination of multiple rules, exceptions and mitigating factors.
With a statistical model, the guesswork is taken out of the credit appraisal process. Further, any charges of undue favour or disfavour are clearly prevented. The system also automatically adapts as the flavour of loan requests rejected and approved changes with the business cycle and changing sectoral preferences of the lender. Early warning systems are also designed for the lender to have fair warning before bad behavior is precipitated.